00 HOUSE CS FOR CS FOR SENATE BILL NO. 310(RES) 01 "An Act relating to the management and sale of state timber and relating to the 02 administration of forest land." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38.05.112 is amended to read: 05  Sec. 38.05.112. FOREST LAND USE PLANS. (a) The department may not 06 [SELL OR] harvest timber, except for isolated sales of less than 50,000 board feet 07 [PERSONAL USE TIMBER HARVEST], until a site-specific forest land use plan has 08 been adopted. A forest land use plan is required whether or not a regional or area land 09 use plan under AS 38.04.065(a) or a forest management plan under AS 41.17.230 has 10 been adopted. 11  (b) The commissioner shall base a forest land use plan on the best available 12 data, including information provided by other agencies [DESCRIBING THE 13 IMMEDIATE AND LONG-TERM EFFECTS OF INDIVIDUAL AND COLLECTIVE 14 FOREST ACTIVITIES ON THE TIMBER BASE AND ON OTHER RESOURCES 01 AND USES]. 02  (c) A forest land use plan shall consider [IN ADDITION TO] the 03 requirements of AS 38.04.065(b) only for areas where a land use plan under 04 AS 38.04.065(a) or a forest management plan under AS 41.17.230 has not been 05 adopted. Regardless of whether there is a land use plan or a forest management 06 plan, each [, A] forest land use plan shall consider 07  (1) commercial timber harvesting, including related activities; 08  (2) harvesting of forest products for personal use; 09  (3) fish and wildlife habitat, including 10  (A) identification and protection of important wildlife habitat; 11  (B) retention of riparian, wetland, and ocean-shoreline 12 vegetation critical for fish and wildlife habitat; and 13  (C) classification of water bodies according to physical 14 characteristics; 15  (4) uses of forest land for nontimber purposes, including 16  (A) recreation, tourism, and related activities; 17  (B) mining, mining claims, mineral leaseholds, and material 18 extraction; 19  (C) uses of fish and wildlife; 20  (D) agriculture, including grazing; and 21  (E) other resources and uses appropriate to the area, including 22 compatible traditional uses; 23  (5) soil characteristics and productivity; 24  (6) water quality; and 25  (7) watershed management. 26  (d) A management plan prepared by the commissioner under AS 41.17.230 27 or AS 38.04.065 must consider and permit the uses described in (c) of this section. 28 If the commissioner finds that a permitted use is incompatible with one or more other 29 uses in a portion of a state forest, the commissioner shall, consistent with 30 AS 41.17.200, affirmatively state in the management plan that finding of 31 incompatibility for the specific area where the incompatibility is anticipated to exist 01 and the time period when the incompatibility is anticipated to exist together with the 02 reasons for each finding. If the commissioner finds that the use described in (c)(1) 03 of this section is incompatible, or otherwise restricts that use, the commissioner 04 shall also document the finding with sound scientific or economic data that clearly 05 proves the incompatibility and the benefits of the restriction. 06 * Sec. 2. AS 38.05.113(c) is amended to read: 07  (c) Sales under 500,000 board feet [THE DEPARTMENT MAY ADOPT 08 REGULATIONS EXEMPTING SMALL] and emergency sales are exempt from the 09 requirements of this section if public notice of the proposed sale is provided in the 10 manner specified in AS 38.05.945(b). Exempt sales, other than emergency sales, 11 under this subsection may not exceed 1,000,000 board feet in a calendar year in 12 each region. 13 * Sec. 3. AS 38.05 is amended by adding a new section to article 4 to read: 14  Sec. 38.05.122. FOREST MANAGEMENT AGREEMENTS. (a) 15 Notwithstanding the requirements of AS 38.05.110 - 38.05.120 or another provision 16 of this chapter, the commissioner, under the procedures set out in this section and if 17 not inconsistent with a land use plan then in effect, may enter into a forest 18 management agreement with a person to authorize the person to enter on the state 19 forest land covered by the agreement for the purposes of selecting, harvesting, and 20 regenerating timber in a manner consistent with sustained yield. 21  (b) At least once each calendar year, the commissioner shall solicit proposals 22 for forest management agreements on state forest land. The commissioner shall identify 23 the forest land included in the solicitation of proposals. The land identified may 24 include land covered by a cooperative resource management or development agreement 25 under AS 38.05.027 subject to the approval of the owner of any land other than state 26 land. The commissioner shall provide notice of the solicitation to all persons who 27 have requested notification and may provide for any additional notice that the 28 commissioner determines is appropriate. Regardless of whether the commissioner has 29 solicited proposals under this subsection, a person may submit a proposal for a forest 30 management agreement to the commissioner at any time for consideration. The 31 commissioner may not consider unsolicited proposals for a parcel of land covered by 01 a solicited proposal until the commissioner has completed the review and determination 02 required under this section concerning the solicited proposals. 03  (c) The commissioner shall solicit public comment for a proposed agreement 04 unless the evaluation under (d) of this section indicates it is unlikely that the proposed 05 agreement will be selected as a tentatively successful proposed agreement. The public 06 comment period under this subsection may not be less than 30 days nor more than 60 07 days. 08  (d) The commissioner shall evaluate proposed agreements submitted under (b) 09 of this section. In evaluating a proposed agreement, the commissioner shall consider 10 the 11  (1) effect of the agreement on the following: 12  (A) commercial timber harvesting, including related activities; 13  (B) harvesting of forest products for personal use; 14  (C) fish and wildlife habitat, including 15  (i) identification and protection of important wildlife 16 habitat; 17  (ii) retention of riparian, wetland, and ocean shoreline 18 vegetation critical for fish and wildlife habitat; and 19  (iii) classification of water bodies according to physical 20 characteristics; 21  (D) uses of forest land for nontimber purposes, including 22  (i) recreation, tourism, and related activities; 23  (ii) mining, mining claims, mineral leaseholds, and 24 material extraction; 25  (iii) uses of fish and wildlife; 26  (iv) agriculture, including grazing; and 27  (v) other resources and uses appropriate to the area, 28 including compatible traditional uses; 29  (E) soil characteristics and productivity; 30  (F) water quality; and 31  (G) watershed management; 01  (2) value of the area for the long-term production of timber; 02  (3) extent that local hire will be increased; 03  (4) intent of the proposer to process a value added product within the 04 state; 05  (5) experience of the proposer in the forest products industry; 06  (6) necessary public access for uses described in (1) of this subsection; 07  (7) financial feasibility of the proposal; 08  (8) technical and financial qualifications of the proposer; 09  (9) stumpage payments offered to be paid; 10  (10) economic benefits from the proposed agreement to the region in 11 which the land that is to be covered by the agreement is located; 12  (11) extent to which the proposed agreement provides for processing 13 in the state of the timber harvested, to the extent permitted by law; 14  (12) economic benefits to state forest land under the proposed 15 agreement; 16  (13) timber inventory; and 17  (14) other factors that the commissioner determines are relevant and 18 appropriate. 19  (e) After evaluating proposed agreements under (d) of this section, the 20 commissioner may designate a tentatively successful proposed agreement. A proposed 21 agreement may not be designated under this subsection until public comment has been 22 solicited under (c) of this section. A tentatively successful proposed agreement may 23 not be designated unless the commissioner includes, and makes a written finding that 24 sets out facts and applicable law to support the commissioner's conclusion, that 25  (1) land or timber covered by the tentatively successful proposed 26 agreement is not reasonably necessary to provide sustained harvest for a sawmill or 27 wood processing facility using that land or timber at the time the proposed agreement 28 was evaluated, or that a final agreement can adequately address those needs; and 29  (2) the tentatively successful proposed agreement will best serve the 30 interests of the state and is consistent with applicable land use or management plans 31 then in effect. 01  (f) The commissioner shall provide notice under AS 38.05.945(b) and (c) of 02 a finding under (e) of this section and designation of a tentatively successful proposed 03 agreement at least 90 days prior to entering into a final agreement. The commissioner 04 shall solicit comments from the public and from state and local government agencies 05 on a tentatively successful proposed agreement. 06  (g) If a tentatively successful proposed agreement is designated under (e) of 07 this section, the commissioner, after considering comments and recommendations 08 received under (f) of this section, may proceed to develop a proposed final agreement 09 between the proposer and the state. A proposed final agreement and the final 10 agreement 11  (1) shall provide for terms, conditions, and limitations determined by 12 the commissioner to be in the public interest; 13  (2) must contain 14  (A) the initial term of the agreement, which may not exceed 20 15 years; 16  (B) the stumpage prices for the timber; 17  (C) provisions requiring compensation from the proposer for 18 scaling services required in order to account for timber sold; 19  (D) provisions requiring compensation for state services 20 provided to administer the agreement; 21  (E) provisions regarding responsibilities for construction and 22 maintenance of access roads necessary to manage the land that is to be covered 23 by the agreement; 24  (F) provisions requiring the processing of the timber in the state 25 if that is the highest and best use of the timber as determined by the 26 commissioner and if permitted by law; 27  (G) provisions regarding consideration for the sale of material 28 obtained from state land for the construction of access roads on the land that 29 is to be covered by the agreement; 30  (H) provisions requiring the proposer to be responsible for 31 reforestation and silvicultural practices on land that is to be covered by the 01 agreement; 02  (I) a statement that activities under the agreement are governed 03 by the provisions of AS 41.17 and regulations adopted under AS 41.17 04 applicable to operations on state land; 05  (J) provisions requiring the submission and approval of biennial 06 operational plans for activities authorized or required by the agreement; 07  (K) requirements for reports and submission of information to 08 the department regarding performance under the agreement; 09  (L) procedures for enforcement and termination of the 10 agreement; 11  (M) provisions for existing public access; 12  (N) an operational level forest inventory every five years; and 13  (O) provisions requiring the proposer to reforest, stabilize, 14 monitor, and meet other residual obligations upon deactivation or termination; 15 these provisions may include bonding. 16  (h) The form of the proposed final agreement developed under (g) of this 17 section must be approved by the attorney general before the agreement is signed by 18 the commissioner. If the forest management agreement covers nonstate land under an 19 agreement authorized under AS 38.05.027, the owner of the land must approve the 20 agreement. After approval by the attorney general under this subsection, the 21 commissioner and the proposer may sign the proposed final agreement. 22  (i) When the commissioner solicits public comment under (c) of this section, 23 and at all times thereafter, the proposed agreements are public records and are open 24 to public inspection and disclosure under AS 09.25.120. Prior to solicitation of public 25 comment under (c) of this section, proposed agreements submitted under this section 26 are confidential and are not open to public inspection or disclosure under 27 AS 09.25.120. When the commissioner designates a tentatively successful proposed 28 agreement under (e) of this section, all documents regarding that proposed agreement 29 and all other competing proposed agreements, as well as a subsequent final agreement 30 and all documents leading up to that agreement, are public records and are open for 31 inspection under AS 09.25.120. 01  (j) All right, title, and interest in or to timber or material in or on land covered 02 by a final forest management agreement remains with the state until the timber or 03 material has been cut or severed, determined as to volume, removed from the site, and 04 paid for in compliance with the agreement. Timber or material that is not removed 05 from land covered by a final forest management agreement within the period specified 06 by the agreement or by an extension of the agreement remains the property of the 07 state. 08  (k) An interest in a final forest management agreement may not be assigned 09 without the prior written consent of the commissioner. An assignment without the 10 prior written consent of the commissioner is void. The commissioner may not consent 11 under this subsection unless the assignment is of the entire interest in the final forest 12 management agreement. The commissioner shall consider all of the factors of this 13 section when making a determination concerning an assignment. 14  (l) The commissioner shall strictly enforce the provisions of the final 15 agreement. Upon the completion of three-quarters of the total term of the agreement, 16 the commissioner shall review the operation and performance of the agreement and 17 determine whether it is in the best interest of the state to renew the agreement. If the 18 commissioner determines that it is in the best interest of the state, the commissioner 19 shall solicit and evaluate proposals, as provided in this section, for renewal of the 20 agreement, including a proposal from the current operator. 21  (m) The activities conducted under a final forest management agreement are 22 governed by AS 41.17 and regulations adopted under AS 41.17 applicable to 23 operations on state land. 24  (n) In this section, 25  (1) "agreement" means a forest management agreement; 26  (2) "proposer" means the person who submitted a proposed forest 27 management agreement under (b) of this section; 28  (3) "sustained yield" has the meaning given in AS 38.04.910. 29 * Sec. 4. AS 41.17.060(c) is amended to read: 30  (c) With respect to state and municipal forest land only, the following 31 standards also apply: 01  (1) forest land shall be administered for the multiple use of the 02 renewable and nonrenewable resources and for the sustained yield of the renewable 03 resources of the land in the manner that best provides for the present needs and 04 preserves the future options of the people of the state; 05  (2) a system of allocating predominant uses or values to particular units 06 within a contiguous area of land shall reflect in reasonable proportion the various 07 resources and values present in that area; 08  (3) to the extent its capacity permits, forest land shall be administered 09 so as to provide for the continuation and expansion of businesses, activities, and 10 lifestyles that are dependent upon or derived from forest resources; 11  (4) timber harvesting is limited to areas where data and information 12 demonstrate that natural or artificial reforestation techniques will result in the 13 production of a sustained yield of merchantable timber from that area; 14  (5) there may not be significant impairment of the productivity of the 15 land and water with respect to renewable resources; 16  (6) allowance shall be made for scenic quality in or adjacent to areas 17 of substantial importance to the tourism and recreation industry; [AND] 18  (7) allowance shall be made for important fish and wildlife habitat; and 19  (8) to the fullest extent practicable, harvested forest land shall be 20 reforested, naturally or artificially, so as to result in a sustained yield of 21 merchantable timber from that land; if artificial planting is required, 22 silviculturally acceptable seedlings must first be available for planting at an 23 economically fair price. 24 * Sec. 5. AS 41.17.060 is amended by adding a new subsection to read: 25  (d) With respect to private forest land only, to the fullest extent practicable, 26 harvested forest land shall be reforested, naturally or artificially. If artificial planting 27 is required, silviculturally acceptable seedlings must first be available for planting at 28 an economically fair price. 29 * Sec. 6. AS 41.17.200 is amended to read: 30  Sec. 41.17.200. STATE FOREST PURPOSES. The purpose of AS 41.17.200 31 - 41.17.230 is to permit the establishment of designated state-owned or acquired land 01 and water areas as state forests. The primary purpose in the establishment of state 02 forests is the development of commercial forest land under the principles of 03 sustained yield and multiple use while perpetuating [PERPETUATION OF] 04 personal, commercial, and other beneficial uses of resources through multiple-use 05 management. 06 * Sec. 7. AS 41.17.200 is amended by adding a new subsection to read: 07  (b) In managing a state forest the commissioner shall 08  (1) allow for the fullest possible access to, and use of, the natural 09 resources, including timber, fish, game, and minerals; the allowance under this 10 paragraph shall take into account the interests of private landowners; 11  (2) maintain forest growth at a high level of productivity; and 12  (3) restrict the public use of the land and its resources only when 13 necessary to carry out the purposes of this chapter. 14 * Sec. 8. SEVERABILITY. Under AS 01.10.030, if AS 38.05.122(d)(11) or (g)(2)(F), or 15 the application of those provisions to any person or circumstance, is held invalid, the 16 remainder of this Act and its application to other persons or circumstances shall not be 17 affected. 18 * Sec. 9. AS 41.17.060(b)(4) is repealed.